103D CONGRESS

2D SESSION H. R. 5243

AN ACT

To amend the Public Works and Economic Development

Act of 1965 to reauthorize economic development programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Economic Development Reauthorization Act of 1994’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

Sec. 2. Direct and supplementary grants.

Sec. 3. Grants for public works facilities.

Sec. 4. Repeal of financial assistance for sewer facilities.

Sec. 5. Relationship of overall economic development plan to public works and

development facility loans.

Sec. 6. Elimination of overall economic development program.

Sec. 7. Redevelopment area loan program.

Sec. 8. Technical assistance, research, and information.

Sec. 9. Business outreach center demonstration project.

Sec. 10. Office of Strategic Economic Development Planning and Policy.

Sec. 11. Office of Economic Development Information.

Sec. 12. Authorization of appropriations for technical assistance, research, and

information.

Sec. 13. Redevelopment areas.

Sec. 14. Annual review.

Sec. 15. Economic development districts.

Sec. 16. Equity between rural and urban areas.

Sec. 17. Applications for assistance.

Sec. 18. Performance evaluations of grant recipients.

Sec. 19. Transfer of funds.

Sec. 20. Extension of benefits.

Sec. 21. Supervision of Regional Counsels.

Sec. 22. Purpose.

Sec. 23. Definition of eligible recipient.

Sec. 24. Base closings and realignments.

Sec. 25. Outreach to communities adversely affected by closures and

realignments of military installations.

Sec. 26. Treatment of revolving loan funds.

Sec. 27. Sale of financial instruments in revolving loan funds.

Sec. 28. Competitive communities pilot program.

Sec. 29. Special economic development and adjustment assistance.

Sec. 30. Compliance with Buy American Act.

Sec. 31. Regulatory relief.

1 SEC. 2. DIRECT AND SUPPLEMENTARY GRANTS.

2 (a) GRANTS.—Section 101(a) of the Public Works

3 and Economic Development Act of 1965 (42 U.S.C.

4 3131(a)) is amended—

5 (1) in the matter preceding paragraph (1), by

6 striking ‘‘representing any redevelopment area or

7 part thereof’’ and inserting ‘‘acting in cooperation

8 with an official of a local government’’; and

9 (2) in paragraph (1)—
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1 (A) in the matter preceding subparagraph

2 (A), by striking ‘‘acquisition, construction’’ and

3 inserting ‘‘acquisition, design, engineering, con4 struction’’;

5 (B) by striking subparagraph (C) and in6 serting the following new subparagraph:

7 ‘‘(C) the area for which the project is to be

8 undertaken has an approved overall economic

9 development plan as provided in section 402

10 and such project is consistent with such plan;

11 and’’; and

12 (C) in subparagraph (D)—

13 (i) by striking ‘‘so designated under

14 section 401(a)(6),’’ and inserting ‘‘de15 scribed in section 401(a)(7),’’; and

16 (ii) by striking ‘‘area.’’ and inserting

17 ‘‘area; and’’.

18 (b) CONSIDERATIONS FOR SUPPLEMENTARY

19 GRANTS.—Section 101(c) of such Act is amended—

20 (1) in the second and third sentences, by strik21 ing ‘‘designated as such under section 401(a)(6) of

22 this Act.’’ and inserting ‘‘described in section

23 401(a)(7).’’; and

24 (2) in the last sentence—
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1 (A) by striking ‘‘the area, the’’ and insert2 ing ‘‘the area and the’’; and

3 (B) by striking ‘‘, and the amount of such’’

4 and all that follows and inserting a period.

5 SEC. 3. GRANTS FOR PUBLIC WORKS FACILITIES.

6 Section 105 of the Public Works and Economic De7 velopment Act of 1965 (42 U.S.C. 3135) is amended to

8 read as follows:

9 ‘‘SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

10 ‘‘There are authorized to be appropriated to carry out

11 this title $195,000,000 for each of fiscal years 1995

12 through 1997. Such sums shall remain available until ex13 pended. Not less than 15 percent and not more than 35

14 percent of the amounts appropriated for any of fiscal years

15 1995 through 1997 under this section shall be expended

16 in redevelopment areas described in section 401(a)(7).’’.

17 SEC. 4. REPEAL OF FINANCIAL ASSISTANCE FOR SEWER

18 FACILITIES.

19 (a) IN GENERAL.—Title I of the Public Works and

20 Economic Development Act of 1965 (42 U.S.C. 3131–

21 3137) is amended—

22 (1) by repealing section 106;

23 (2) by redesignating section 107 as section 104;

24 and
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1 (3) by moving such section 104 to appear after

2 section 103.

3 (b) CONFORMING AMENDMENT.—Section 211(b)(3)

4 of the Appalachian Regional Development Act of 1965 (40

5 U.S.C. App. 211(b)(3)) is amended in the last sentence

6 by striking ‘‘Notwithstanding’’ and all that follows

7 through ‘‘education-related’’ and inserting ‘‘An education8 related’’.

9 SEC. 5. RELATIONSHIP OF OVERALL ECONOMIC DEVELOP10 MENT PLAN TO PUBLIC WORKS AND DEVEL11 OPMENT FACILITY LOANS.

12 Section 201(a) of the Public Works and Economic

13 Development Act of 1965 (42 U.S.C. 3141(a)) is amend14 ed—

15 (1) in the matter preceding paragraph (1), by

16 striking ‘‘representing any redevelopment area there17 of’’ and inserting ‘‘acting in cooperation with an of18 ficial of a local government’’; and

19 (2) by striking paragraph (5) and inserting the

20 following new paragraph:

21 ‘‘(5) such area has an approved overall eco22 nomic development plan as provided in section 402

23 and the project for which financial assistance is

24 sought is consistent with such plan.’’.
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1 SEC. 6. ELIMINATION OF OVERALL ECONOMIC DEVELOP2 MENT PROGRAM.

3 Section 202(b) of the Public Works and Economic

4 Development Act of 1965 (42 U.S.C. 3142(b)) is amend5 ed—

6 (1) in paragraph (1), by striking ‘‘Such finan7 cial assistance shall not be extended’’ and inserting

8 ‘‘The applicant for such financial assistance shall in9 clude, in the application of the applicant for such as10 sistance, an assurance that the assistance will not be

11 used’’; and

12 (2) in paragraph (10), by striking ‘‘there shall

13 be submitted to and approval of the Secretary an

14 overall program for the economic development of the

15 area and’’ and inserting ‘‘the applicant shall submit

16 to the Secretary under section 402, and obtain ap17 proval of, an overall economic development plan and

18 there is’’.

19 SEC. 7. REDEVELOPMENT AREA LOAN PROGRAM.

20 (a) IN GENERAL.—Section 204(a) of the Public

21 Works and Economic Development Act of 1965 (42

22 U.S.C. 3144(a)) is amended by striking the last two sen23 tences.

24 (b) CONFORMING AMENDMENTS.—

25 (1) Section 2 of the Act entitled ‘‘An Act to

26 amend the Public Works and Economic Development
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1 Act of 1965 to extend the authorizations for title I

2 through IV through fiscal year 1971’’, approved

3 July 6, 1970 (42 U.S.C. 3162 note) is repealed.

4 (2) Section 6 of the Act entitled ‘‘An Act to

5 amend the Public Works and Economic Development

6 Act of 1965 to extend the authorizations for a one7 year period’’, approved June 18, 1973 (42 U.S.C.

8 3162 note) is amended—

9 (A) in subsection (a), by striking ‘‘(a)’’;

10 and

11 (B) by striking subsection (b).

12 SEC. 8. TECHNICAL ASSISTANCE, RESEARCH, AND INFOR13 MATION.

14 Section 301(a)(1) of the Public Works and Economic

15 Development Act of 1965 (42 U.S.C. 3151(a)(1)) is

16 amended by striking ‘‘areas which he has designated as

17 redevelopment areas under this Act,’’ and inserting ‘‘rede18 velopment areas,’’.

19 SEC. 9. BUSINESS OUTREACH CENTER DEMONSTRATION

20 PROJECT.

21 Section 303 of the Public Works and Economic De22 velopment Act of 1965 (42 U.S.C. 3152) is amended to

23 read as follows:
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1 ‘‘SEC. 303. BUSINESS OUTREACH CENTER DEMONSTRATION

2 PROJECT.

3 ‘‘(a) DEFINITION.—As used in this section, the term

4 ‘isolated small business’ means a small business that is

5 unable to effectively access small business services pro6 vided by a Federal, State, or local government due to lin7 guistic, cultural, or geographic barriers, as determined by

8 the Secretary.

9 ‘‘(b) DEMONSTRATION PROJECT.—Using funds made

10 available under this title, the Secretary shall conduct a

11 demonstration project in each of fiscal years 1995 through

12 1997 for the purpose of demonstrating methods of assist13 ing isolated small businesses to access small business serv14 ices provided by Federal, State, and local governments.

15 ‘‘(c) ESTABLISHMENT OF CENTERS.—In conducting

16 the demonstration project under this section, the Sec17 retary shall establish 3 business outreach centers. At least

18 1 of the centers shall be located in a rural area.

19 ‘‘(d) DUTIES OF CENTERS.—Each business outreach

20 center established under this section shall—

21 ‘‘(1) provide a one-stop clearinghouse to assist

22 isolated small businesses in accessing small business

23 services provided by Federal, State, and local gov24 ernments; and

25 ‘‘(2) improve efficiency in the delivery of such

26 services.
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1 ‘‘(e) SERVICES TO BE PROVIDED.—Each business

2 outreach center established under this section shall pro3 vide each of the following services:

4 ‘‘(1) Outreach to isolated small businesses.

5 ‘‘(2) Assessment of the need of isolated small

6 businesses for assistance services.

7 ‘‘(3) Referral of isolated small businesses to

8 small business assistance agencies.

9 ‘‘(4) Preparation of materials required by iso10 lated small businesses for participation in small

11 business assistance programs.

12 ‘‘(5) Case management to ensure follow-up and

13 quality control of business services.

14 ‘‘(6) Coordination of networking among isolated

15 small businesses.

16 ‘‘(7) Quality control of small business assist17 ance services.’’.

18 SEC. 10. OFFICE OF STRATEGIC ECONOMIC DEVELOPMENT

19 PLANNING AND POLICY.

20 Title III of the Public Works and Economic Develop21 ment Act of 1965 (42 U.S.C. 3151–3153) is amended by

22 adding at the end the following new section:
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1 ‘‘SEC. 305. OFFICE OF STRATEGIC ECONOMIC DEVELOP2 MENT PLANNING AND POLICY.

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab4 lish in the Economic Development Administration an Of5 fice of Strategic Economic Development Planning and Pol6 icy (referred to in this section as the ‘Office’).

7 ‘‘(b) DIRECTOR.—The Office shall be headed by a Di8 rector, who shall be appointed by the Secretary and who

9 shall report to the Assistant Secretary for Economic De10 velopment.

11 ‘‘(c) DUTIES.—The duties of the Director are as fol12 lows:

13 ‘‘(1) RESEARCH, EVALUATION, AND DEM14 ONSTRATION PROJECTS.—The Director shall support

15 research, evaluation, and demonstration projects to

16 study and assess best practices in economic develop17 ment and to examine trends and changes in eco18 nomic conditions that affect regional development.

19 The Director shall conduct a study of innovative eco20 nomic development financing tools, including loan

21 guarantees, rural development investment zones, and

22 other measures, that may be employed to further

23 economic development of States, regions, and local24 ities.

25 ‘‘(2) POLICY DEVELOPMENT.—The Director

26 shall develop and submit to the Secretary rec-
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1 ommendations on both short- and long-term policies

2 regarding economic development issues and pro3 grams, to help foster the diffusion of innovative, best

4 practices in economic development throughout the

5 Department of Commerce.

6 ‘‘(3) INFORMATION AND COORDINATION.—The

7 Director shall establish procedures to ensure that

8 the Economic Development Administration assumes

9 a central role in developing and promoting means of

10 greater coordination among States, regions, and

11 local communities in the design and implementation

12 of Federal economic development programs, and to

13 foster coordination among Federal economic develop14 ment programs, to reduce duplication and frag15 mentation of Federal economic development efforts.

16 ‘‘(d) FEDERAL COORDINATING COUNCIL FOR ECO17 NOMIC DEVELOPMENT.—

18 ‘‘(1) IN GENERAL.—There is established a Fed19 eral Coordinating Council for Economic Develop20 ment (referred to in this subsection as the ‘Coun21 cil’).

22 ‘‘(2) COMPOSITION OF THE COUNCIL.—

23 ‘‘(A) IN GENERAL.—The Council shall be

24 composed of representatives from Federal agen25 cies, appointed by the heads of the agencies, in-
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1 volved in matters that affect regional economic

2 development. The Secretary shall determine the

3 Federal agencies that are involved in matters

4 that affect regional economic development.

5 ‘‘(B) VACANCIES.—Any vacancy in the

6 Council shall not affect the powers of the Coun7 cil, but shall be filled in the same manner as

8 the original appointment.

9 ‘‘(3) DUTIES.—The Council shall assist the

10 Secretary in providing a unifying framework for eco11 nomic development efforts and shall develop a gov12 ernmentwide strategic plan for economic develop13 ment. The Council shall work to improve coordina14 tion of Federal economic development efforts to

15 eliminate duplication and to direct Federal resources

16 to improve economic conditions.

17 ‘‘(4) TRAVEL EXPENSES.—The members of the

18 Council shall not receive compensation for service on

19 the Council but shall be allowed travel expenses, in20 cluding per diem in lieu of subsistence, at rates au21 thorized for employees of agencies under subchapter

22 I of chapter 57 of title 5, United States Code, while

23 away from the homes or regular places of business

24 of the members in the performance of services for

25 the Council.
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1 ‘‘(5) FACILITIES, SUPPLIES, AND PERSON2 NEL.—

3 ‘‘(A) IN GENERAL.—Upon the request of

4 the Council, the Secretary shall provide to the

5 Council any facilities, supplies, and personnel

6 necessary for the Council to carry out the re7 sponsibilities of the Council under this sub8 section.

9 ‘‘(B) DETAILS.—In the case of a detail of

10 a Federal Government employee under para11 graph (1), the employee may be detailed to the

12 Council without reimbursement. The detail shall

13 be without interruption or loss of civil service

14 status or privilege.

15 ‘‘(6) HEARINGS.—The Council may hold such

16 hearings, sit and act at such times and places, take

17 such testimony, and receive such evidence as the

18 Council considers advisable to carry out this sub19 section.

20 ‘‘(7) INFORMATION FROM FEDERAL AGEN21 CIES.—The Council may secure directly from any

22 Federal department or agency such information as

23 the Council considers necessary to carry out this

24 subsection. Upon request of the Council, the head of
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1 such department or agency shall furnish such infor2 mation to the Council.

3 ‘‘(8) POSTAL SERVICES.—The Council may use

4 the United States mails in the same manner and

5 under the same conditions as other departments and

6 agencies of the Federal Government.

7 ‘‘(9) TERMINATION.—The Council shall termi8 nate 1 year after the date of the establishment of

9 the Council.’’.

10 SEC. 11. OFFICE OF ECONOMIC DEVELOPMENT INFORMA11 TION.

12 Title III of the Public Works and Economic Develop13 ment Act of 1965 (42 U.S.C. 3151–3153) (as amended

14 by section 10) is further amended by adding at the end

15 the following new section:

16 ‘‘SEC. 306. OFFICE OF ECONOMIC DEVELOPMENT INFORMA17 TION.

18 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab19 lish an Office of Economic Development Information (re20 ferred to in this section as the ‘Office’) within the Office

21 of Strategic Economic Development Planning and Policy.

22 ‘‘(b) RESPONSIBILITIES.—The Office shall—

23 ‘‘(1) serve as a central information clearing24 house on matters relating to economic development,

25 economic adjustment, disaster recovery, industrial
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1 retention, and defense reinvestment programs and

2 activities of the Federal and State governments, in3 cluding political subdivisions of the States; and

4 ‘‘(2) help potential and actual applicants for

5 economic development, economic adjustment, disas6 ter recovery, industrial retention, and defense rein7 vestment assistance under Federal, State, and local

8 laws in locating and applying for such assistance, in9 cluding financial and technical assistance.

10 ‘‘(c) INFORMATION DATA BASES.—

11 ‘‘(1) USES.—The Office shall develop informa12 tion data bases for use by Federal departments and

13 agencies, State and local governmental agencies,

14 public and private entities, and individuals to assist

15 such agencies, entities, and individuals in the proc16 ess of identifying and applying for assistance and re17 sources under economic development, economic

18 adjustment, disaster recovery, industrial retention,

19 and defense reinvestment programs and activities of

20 the Federal, State, and local governments.

21 ‘‘(2) SPECIFIC KINDS OF INFORMATION RE22 QUIRED TO BE INCLUDED.—The data bases shall in23 clude each of the following kinds of information:

24 ‘‘(A) A comprehensive compilation of all

25 relevant information concerning available eco-
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1 nomic development, economic adjustment, disas2 ter recovery, industrial retention, and defense

3 reinvestment programs of the Federal Govern4 ment, including key contact personnel, descrip5 tions of the application process, eligibility re6 quirements and criteria, selection and followup

7 procedures, and other such relevant informa8 tion.

9 ‘‘(B) A compilation of major State and

10 local governmental economic development, eco11 nomic adjustment, disaster recovery, industrial

12 retention, and defense reinvestment assistance

13 programs, including lists of appropriate offices,

14 officers, and contact personnel connected with,

15 or involved in, such programs.

16 ‘‘(C) A compilation of relevant and avail17 able economic data and trends, including infor18 mation about the national, regional, and local

19 impacts of trade agreements, defense spending

20 and downsizing, technological change, and other

21 sources of substantial economic dislocation.

22 ‘‘(D) A compilation of case studies and

23 best practices in economic development, adjust24 ment, and reinvestment.
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1 ‘‘(E) A compilation of technology utiliza2 tion programs, assistance, and resources.

3 ‘‘(F) A compilation of published works

4 (books, reports, articles, videos, and tapes), and

5 selected texts of such works, related to all fac6 ets of economic development, economic adjust7 ment, and defense reinvestment.

8 ‘‘(G) A compilation of information on case

9 studies on early warning and intervention ef10 forts.

11 ‘‘(3) POINTS OF PUBLIC ACCESS.—

12 ‘‘(A) IN GENERAL.—The Office shall es13 tablish several means to ensure easy access by

14 the public and others to such data bases, and

15 to ensure that the data bases be as accessible,

16 user-friendly, culturally neutral, and affordable

17 as possible.

18 ‘‘(B) MEANS OF ACCESS.—Access to the

19 data services of the Office shall include each of

20 the following means:

21 ‘‘(i) A toll-free nationwide telephone

22 number to provide direct phone access to

23 the public.

24 ‘‘(ii) On-line electronic access through

25 existing computer network services and
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1 publicly available computer data base ac2 cess facilities, such as at repository librar3 ies and by direct call-in via modem.

4 ‘‘(iii) Printed manuals and orientation

5 materials.

6 ‘‘(iv) Periodic orientation workshops

7 available to the public.

8 ‘‘(v) On-call information specialists to

9 address special problems requiring person10 to-person assistance.

11 ‘‘(d) INTERAGENCY COORDINATION.—The Secretary

12 shall enter into such agreements and understandings as

13 may be necessary with other Federal departments and

14 agencies to coordinate the accomplishment of the objec15 tives of this section.’’.

16 SEC. 12. AUTHORIZATION OF APPROPRIATIONS FOR TECH17 NICAL ASSISTANCE, RESEARCH, AND INFOR18 MATION.

19 Title III of the Public Works and Economic Develop20 ment Act of 1965 (42 U.S.C. 3151–3153) (as amended

21 by section 11) is further amended by adding at the end

22 the following new section:

23 ‘‘SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘There are authorized to be appropriated to carry out

25 this title $50,000,000 for each of fiscal years 1995
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1 through 1997. Such sums shall remain available until ex2 pended.’’.

3 SEC. 13. REDEVELOPMENT AREAS.

4 Section 401 of the Public Works and Economic De5 velopment Act of 1965 (42 U.S.C. 3161) is amended to

6 read as follows:

7 ‘‘SEC. 401. AREA ELIGIBILITY.

8 ‘‘(a) CERTIFICATION.—An applicant seeking assist9 ance under title I or II to undertake a project for an area

10 shall certify, as part of an application for such assistance,

11 that the area on the date of submission of such application

12 meets 1 or more of the following criteria:

13 ‘‘(1) The per capita income of the area is

14 80 percent or less of the per capita income of the

15 United States.

16 ‘‘(2) The average rate of unemployment in the

17 area (seasonally adjusted), as determined by the

18 Secretary of Labor for the most recent 24-month pe19 riod for which statistics are available, minus the na20 tional average rate of unemployment (seasonally ad21 justed), as so determined, is equal to or exceeds 1

22 percent.

23 ‘‘(3) The average rate of unemployment in the

24 area (seasonally adjusted), as determined by the

25 Secretary of Labor for the most recent 12-month pe-
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1 riod for which statistics are available, minus the na2 tional average rate of unemployment (seasonally ad3 justed), as so determined, is equal to or exceeds 2

4 percent.

5 ‘‘(4) The area has experienced or is about to

6 experience a sudden economic dislocation resulting

7 in job loss that is significant both in terms of the

8 number of jobs eliminated and the effect on the rate

9 of unemployment in the area (if information on such

10 rate is available), as such rate is determined by the

11 Secretary of Labor.

12 ‘‘(5) The population growth rate of the United

13 States, as determined by the Secretary of Commerce

14 for an appropriate period, minus the population

15 growth rate of the area, as so determined, is equal

16 to or exceeds 3 percent.

17 ‘‘(6) The area has experienced a decline in total

18 employment that is equal to or exceeds 2 percent

19 over the most recent 5-year period for which statis20 tics are available, as such employment is determined

21 by the Secretary of Labor, acting through the Com22 missioner of Labor Statistics.

23 ‘‘(7) The area is a community or neighborhood

24 (defined without regard to political or other subdivi-
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1 sions or boundaries) that the Secretary determines

2 has 1 or more of the following conditions:

3 ‘‘(A) A large concentration of low-income

4 persons.

5 ‘‘(B) A rural or urban area having sub6 stantial outmigration or substantial economic

7 deterioration and unemployment.

8 ‘‘(C) Substantial unemployment.

9 ‘‘(b) DOCUMENTATION.—

10 ‘‘(1) DATA AND STATISTICS.—A certification

11 made under subsection (a) shall be supported by

12 Federal data, if available, and in other cases by data

13 available through the appropriate State government.

14 The applicant shall use the most recent statistics

15 available to support the certification.

16 ‘‘(2) ACCEPTANCE OF DATA.—The Secretary

17 shall accept the data unless the Secretary deter18 mines that the data are inaccurate.

19 ‘‘(c) SPECIAL RULE.—With respect to a redevelop20 ment area described in subsection (a)(7)—

21 ‘‘(1) the project to be carried out in the area

22 shall not be subject to section 101(a)(1)(A);

23 ‘‘(2) the area shall not be subject to section

24 101(a)(1)(C); and
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1 ‘‘(3) the area shall not be considered to be a re2 development area for purposes of section

3 403(a)(1)(B).

4 ‘‘(d) PRIOR DESIGNATION.—Any designation of a re5 development area for the purposes of this Act that was

6 made before the date of enactment of the Economic Devel7 opment Reauthorization Act of 1994 shall not be effective

8 after such date.

9 ‘‘(e) DEFINITION.—As used in this Act, the term ‘re10 development area’ means an area that is the subject of

11 a certification that is—

12 ‘‘(1) described in subsection (a); and

13 ‘‘(2) submitted by an applicant as part of an

14 application for assistance—

15 ‘‘(A) that is described in subsection (a);

16 and

17 ‘‘(B) for which the applicant obtains the

18 approval of the Secretary.’’.

19 SEC. 14. ANNUAL REVIEW.

20 (a) IN GENERAL.—Section 402 of the Public Works

21 and Economic Development Act of 1965 (42 U.S.C. 3162)

22 is amended to read as follows:
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1 ‘‘SEC. 402. OVERALL ECONOMIC DEVELOPMENT PLAN AND

2 INVESTMENT STRATEGY.

3 ‘‘(a) OVERALL ECONOMIC DEVELOPMENT PLAN AND

4 INVESTMENT STRATEGY.—The Secretary may provide as5 sistance under title I or II to an applicant for a project

6 to be undertaken in an area only if the applicant has pre7 pared and submitted to the Secretary, and obtained ap8 proval of, an overall economic development plan or an in9 vestment strategy. Such an overall economic development

10 plan or investment strategy shall—

11 ‘‘(1) identify the economic development prob12 lems to be addressed using such assistance;

13 ‘‘(2) identify past, present, and projected fur14 ther economic development investments in such area

15 and public and private participants and sources of

16 funding for such investments; and

17 ‘‘(3) set forth a strategy for addressing the eco18 nomic development problems identified pursuant to

19 paragraph (1) and describe how the strategy will

20 solve such problems.

21 ‘‘(b) APPLICATION REQUIREMENTS.—In submitting

22 an application for assistance under title I or II, an appli23 cant shall describe how the proposed project implements

24 the plan or strategy, provide estimates of costs and time25 tables for completion for the project, and provide a sum-
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1 mary of public and private resources expected to be avail2 able for the project.

3 ‘‘(c) EXISTING PLANS AND INVESTMENT STRATE4 GIES.—To the maximum extent practicable, the Secretary

5 shall approve under subsection (a) overall economic devel6 opment plans, and overall economic development pro7 grams, that were approved by the Secretary under this

8 Act before the date of enactment of the Economic Devel9 opment Reauthorization Act of 1994 and that substan10 tially meet the requirements of this section.

11 ‘‘(d) DEFINITION.—As used in this Act, the term

12 ‘economic development plan’ includes—

13 ‘‘(1) a plan or program described in subsection

14 (c) and submitted for approval under subsection (a);

15 and

16 ‘‘(2) an investment strategy submitted for ap17 proval under subsection (a) in lieu of such a plan.’’.

18 (b) CONFORMING AMENDMENTS.—

19 (1) TRADE ACT OF 1974.—Section 273(c)(2) of

20 the Trade Act of 1974 (19 U.S.C. 2373(c)(2)) is

21 amended—

22 (A) by striking ‘‘overall economic develop23 ment program’’ and inserting ‘‘overall economic

24 development plan or investment strategy’’; and
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1 (B) by striking ‘‘section 202(b)(10)’’ and

2 inserting ‘‘section 402’’.

3 (2) COMMUNITY ECONOMIC DEVELOPMENT ACT

4 OF 1981.—Section 626(b)(1) of the Community Eco5 nomic Development Act of 1981 (42 U.S.C.

6 9815(b)(1)) is amended—

7 (A) by striking ‘‘Publc’’ and inserting

8 ‘‘Public’’;

9 (B) by striking ‘‘overall economic develop10 ment program’’ and inserting ‘‘overall economic

11 development plan or investment strategy’’; and

12 (C) by striking ‘‘section 202(b)(10)’’ and

13 inserting ‘‘section 402’’.

14 SEC. 15. ECONOMIC DEVELOPMENT DISTRICTS.

15 (a) RELATIONSHIP TO OVERALL ECONOMIC DEVEL16 OPMENT PLANS.—Section 403 of the Public Works and

17 Economic Development Act of 1965 (42 U.S.C. 3171) is

18 amended—

19 (1) in subsections (a)(1)(C), (a)(1)(D),

20 (a)(2)(A), (a)(3)(A), (a)(4)(B), (e), and (i) by strik21 ing ‘‘overall economic development program’’ and in22 serting ‘‘overall economic development plan’’;

23 (2) in subsection (a)(1)(D), by striking ‘‘pro24 gram’’ the second place the term appears and insert25 ing ‘‘plan’’; and
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1 (3) in subsections (b) and (b)(2)(B), by striking

2 ‘‘overall economic development programs’’ and in3 serting ‘‘overall economic development plans’’.

4 (b) RELATIONSHIP TO REDEVELOPMENT AREA.—

5 Section 403(a)(4) of such Act is amended by striking

6 ‘‘(designated under section 401)’’.

7 (c) ECONOMIC DEVELOPMENT DISTRICT DE8 FINED.—Section 403(d) of such Act is amended by adding

9 at the end the following new sentence: ‘‘Such term in10 cludes any economic development district designated by

11 the Secretary under this section before the date of enact12 ment of the Economic Development Reauthorization Act

13 of 1994, unless the Secretary terminates the designa14 tion.’’.

15 (d) FUNDING.—Section 403 of such Act is amend16 ed—

17 (1) by striking subsection (g) and inserting the

18 following new subsection:

19 ‘‘(g) Amounts authorized to be appropriated under

20 other sections of this Act shall be available for purposes

21 of carrying out paragraphs (3) and (4) of subsection (a).’’;

22 (2) by striking subsection (h); and

23 (3) by redesignating subsections (i) and (j) as

24 subsections (h) and (i), respectively.
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1 SEC. 16. EQUITY BETWEEN RURAL AND URBAN AREAS.

2 Title IV of the Public Works and Economic Develop3 ment Act of 1965 (42 U.S.C. 3161 et seq.) is amended

4 by adding at the end the following new part:

5 ‘‘PART E—EQUITY BETWEEN RURAL AND URBAN

6 AREAS

7 ‘‘SEC. 406. ALLOCATIONS BASED ON THE LEVEL OF ECO8 NOMIC DISTRESS OF AN AREA.

9 ‘‘Not later than 6 months after the date of enactment

10 of the Economic Development Reauthorization Act of

11 1994, the Secretary shall issue and implement regulations

12 containing criteria and procedures to prioritize allocations

13 of Federal assistance made under this Act, so that, not14 withstanding any other provision of this Act, the level of

15 economic distress of an area, not a preference for a geo16 graphic area or a specific type of economic distress, is the

17 primary factor considered by the Secretary in determining

18 whether the area receives an allocation of Federal assist19 ance under this Act.’’.

20 SEC. 17. APPLICATIONS FOR ASSISTANCE.

21 (a) EXPEDITED PROCESSING.—Title VI of the Public

22 Works and Economic Development Act of 1965 (42

23 U.S.C. 3201–3204) is amended by adding at the end the

24 following new section:
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1 ‘‘SEC. 605. EXPEDITED PROCESSING OF APPLICATIONS.

2 ‘‘(a) GUIDELINES.—Not later than 60 days after the

3 date of enactment of this section, the Assistant Secretary

4 for Economic Development shall—

5 ‘‘(1) develop and publish in the Federal Reg6 ister guidelines that establish procedures to expedite

7 the processing of applications for assistance under

8 this Act; and

9 ‘‘(2) transmit to the Committee on Public

10 Works and Transportation of the House of Rep11 resentatives and the Committee on Environment and

12 Public Works of the Senate a report containing such

13 guidelines.

14 ‘‘(b) CONTENTS.—Guidelines to be developed and

15 published under subsection (a) shall, at a minimum, pro16 vide for—

17 ‘‘(1) increased reliance on self-certification by

18 applicants for such assistance to establish compli19 ance with other Federal laws;

20 ‘‘(2) greater use of uniform application forms

21 and procedures;

22 ‘‘(3) delegation of decisionmaking authority to

23 regional offices of the Economic Development Ad24 ministration; and

25 ‘‘(4) reduction in the time and number of re26 views conducted by offices of the Department of
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1 Commerce other than the Economic Development

2 Administration.’’.

3 (b) UNIFORM APPLICATION FORM.—Title VI of such

4 Act (as amended by subsection (a)) is further amended

5 by adding at the end the following new section:

6 ‘‘SEC. 606. UNIFORM APPLICATION FORM.

7 ‘‘(a) DEVELOPMENT.—The Secretary shall, in co8 operation with the heads of appropriate Federal depart9 ments and agencies, develop a general, simplified applica10 tion form for grant assistance under this Act that may

11 be used by all Federal departments and agencies that pro12 vide grant assistance.

13 ‘‘(b) REPORT.—Not later than 180 days after the

14 date of enactment of this section, the Secretary shall

15 transmit to Congress a report on use of the form devel16 oped pursuant to subsection (a) by Federal departments

17 and agencies.’’.

18 SEC. 18. PERFORMANCE EVALUATIONS OF GRANT RECIPI19 ENTS.

20 Title VI of the Public Works and Economic Develop21 ment Act of 1965 (42 U.S.C. 3201–3204) (as amended

22 by subsections (a) and (b) of section 17) is further amend23 ed by adding at the end the following new section:
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1 ‘‘SEC. 607. PERFORMANCE EVALUATIONS OF GRANT RE2 CIPIENTS.

3 ‘‘(a) IN GENERAL.—At least once every 2 years, the

4 Secretary shall conduct an evaluation of each university

5 center receiving assistance under title III (referred to in

6 this section as a ‘university center’) and economic develop7 ment district receiving grant assistance under this Act to

8 assess the performance and contribution toward job cre9 ation of the recipient.

10 ‘‘(b) CRITERIA.—

11 ‘‘(1) ESTABLISHMENT.—The Secretary shall es12 tablish criteria for use in conducting evaluations

13 under subsection (a).

14 ‘‘(2) CRITERIA FOR UNIVERSITY CENTERS.—

15 The criteria for evaluation of a university center

16 shall, at a minimum, provide for an assessment of

17 the contribution of the center to providing technical

18 assistance, conducting applied research, and dissemi19 nating results of the activities of the center.

20 ‘‘(3) CRITERIA FOR ECONOMIC DEVELOPMENT

21 DISTRICTS.—The criteria for evaluation of an eco22 nomic development district shall, at a minimum, pro23 vide for an assessment of management standards, fi24 nancial accountability, and program performance.

25 ‘‘(c) PEER REVIEW.—In conducting an evaluation of

26 a university center under subsection (a), the Secretary
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1 shall provide for the participation in the evaluation of at

2 least 1 other university center on a cost-reimbursement

3 basis.’’.

4 SEC. 19. TRANSFER OF FUNDS.

5 Section 708 of the Public Works and Economic De6 velopment Act of 1965 (42 U.S.C. 3218) is amended by

7 adding at the end the following new subsection:

8 ‘‘(d) Notwithstanding any other provision of law, the

9 Secretary may accept such transfers of funds from other

10 departments and agencies of the Federal Government as

11 the Secretary determines to be appropriate and use such

12 funds to carry out objectives of this Act, if the Secretary

13 uses the funds to carry out objectives for which (and in

14 accordance with the terms under which) the funds are spe15 cifically authorized and appropriated. Not more than 5

16 percent of such funds may be transferred to the account

17 relating to salaries and expenses of the Economic Develop18 ment Administration.’’.

19 SEC. 20. EXTENSION OF BENEFITS.

20 Section 715 of the Public Works and Economic De21 velopment Act of 1965 (42 U.S.C. 3225) is amended by

22 striking ‘‘such areas as may be designated as ‘redevelop23 ment areas’ or ‘economic development centers’ under the

24 authority of section 401 or 403 of this Act:’’ and inserting

25 ‘‘redevelopment areas and such areas as may be des-
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1 ignated as ‘economic development centers’ under section

2 403:’’.

3 SEC. 21. SUPERVISION OF REGIONAL COUNSELS.

4 Title VII of the Public Works and Economic Develop5 ment Act of 1965 (42 U.S.C. 3211–3226) is amended by

6 adding at the end the following new section:

7 ‘‘SEC. 717. SUPERVISION OF REGIONAL COUNSELS.

8 ‘‘The Secretary shall take such actions as may be

9 necessary to ensure that individuals serving as Regional

10 Counsels of the Economic Development Administration re11 port directly to their respective Regional Directors, except

12 that the General Counsel shall have authority to make de13 terminations relating to the technical legal ability of the

14 individuals.’’.

15 SEC. 22. PURPOSE.

16 The first sentence of section 901 of the Public Works

17 and Economic Development Act of 1965 (42 U.S.C. 3241)

18 is amended by striking ‘‘It is the purpose of this title’’

19 and inserting ‘‘The purposes of title I and of this title

20 are’’.

21 SEC. 23. DEFINITION OF ELIGIBLE RECIPIENT.

22 Section 902 of the Public Works and Economic De23 velopment Act of 1965 (42 U.S.C. 3242) is amended to

24 read as follows:
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1 ‘‘SEC. 902. DEFINITION.

2 ‘‘As used in this title, the term ‘eligible recipient’

3 means a redevelopment area, an economic development

4 district, an Indian tribe, a State, a city or other political

5 subdivision of a State, a consortium of such political sub6 divisions, a public or private nonprofit organization, or a

7 public or private nonprofit association.’’.

8 SEC. 24. BASE CLOSINGS AND REALIGNMENTS.

9 Section 903 of the Public Works and Economic De10 velopment Act of 1965 (42 U.S.C. 3243) is amended—

11 (1) in the matter following subparagraph (B) of

12 subsection (a)(1), by striking ‘‘unemployment com13 pensation (in accordance with subsection (d) of this

14 section), rent supplements, mortgage payment as15 sistance, research,’’ and inserting ‘‘administrative

16 expenses, industrial retention,’’; and

17 (2) by adding at the end the following new sub18 section:

19 ‘‘(e)(1) In any case in which the Secretary determines

20 that a need exists for assistance under subsection (a) due

21 to the closure or realignment of a military installation, or

22 for an industrial, a community, or a workforce adjustment

23 due to a reduction in amounts made available under or

24 termination of a defense contract, the Secretary may make

25 such assistance available to an eligible recipient for a

26 project to be carried out on the military installation, for
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1 a project to be carried out in a community adversely af2 fected by the closure or realignment, or for defense conver3 sion activities.

4 ‘‘(2) Notwithstanding any other provision of law, the

5 Secretary may provide to an eligible recipient any assist6 ance available under this title for a project to be carried

7 out on a military installation that is closed or scheduled

8 for closure or realignment, or for defense conversion ac9 tivities, without requiring that the eligible recipient have

10 title to the property on which the installation is located

11 or the activities will be carried out, or a leasehold interest

12 in the property, for any specified term.’’.

13 SEC. 25. OUTREACH TO COMMUNITIES ADVERSELY AF14 FECTED BY CLOSURES AND REALIGNMENTS

15 OF MILITARY INSTALLATIONS.

16 Title IX of the Public Works and Economic Develop17 ment Act of 1965 (42 U.S.C. 3241–3245) is amended—

18 (1) by redesignating section 905 as section 909;

19 and

20 (2) by inserting after section 904 the following

21 new section:
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1 ‘‘SEC. 905. OUTREACH TO COMMUNITIES ADVERSELY AF2 FECTED BY CLOSURES AND REALIGNMENTS

3 OF MILITARY INSTALLATIONS.

4 ‘‘(a) DESIGNATION OF AGENCY REPRESENTA5 TIVES.—The Assistant Secretary for Economic Develop6 ment shall designate for each State in which communities

7 are adversely affected by closures and realignments of

8 military installations, an individual to serve as a rep9 resentative of the Economic Development Administration.

10 Such individual may be the State Economic Development

11 Agency Representative or another qualified individual.

12 ‘‘(b) RESPONSIBILITIES.—Individuals appointed as

13 agency representatives under subsection (a) shall provide

14 outreach and technical assistance, to communities ad15 versely affected by closures and realignments of military

16 installations, on obtaining assistance from the Economic

17 Development Administration.’’.

18 SEC. 26. TREATMENT OF REVOLVING LOAN FUNDS.

19 Title IX of the Public Works and Economic Develop20 ment Act of 1965 (42 U.S.C. 3241–3245) (as amended

21 by section 25) is further amended by inserting after sec22 tion 905 the following new section:

23 ‘‘SEC. 906. TREATMENT OF REVOLVING LOAN FUNDS.

24 ‘‘(a) IN GENERAL.—An amount made available

25 through a grant made under this title that is used by an

26 eligible recipient to establish a revolving loan fund shall
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1 not be treated, except as provided by subsection (b), as

2 an amount derived from Federal funds for the purposes

3 of any Federal law after such amount is loaned from the

4 fund to a borrower and repaid to the fund.

5 ‘‘(b) EXCEPTIONS.—An amount described in sub6 section (a) that is loaned from a revolving loan fund to

7 a borrower and repaid to the fund—

8 ‘‘(1) may be used only for a project that is con9 sistent with the purposes of this title; and

10 ‘‘(2) shall be subject to the financial manage11 ment, accounting, reporting, and auditing require12 ments that were originally applicable to such amount

13 on the date on which the Secretary made the

14 amount available to the recipient through a grant

15 described in subsection (a).

16 ‘‘(c) REGULATIONS.—Not later than 30 days after

17 the date of enactment of this section, the Secretary shall

18 issue regulations to carry out subsection (a).

19 ‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu20 ing any final guidelines or administrative manuals govern21 ing the operation of revolving loan funds established using

22 amounts from grants made under this title, the Secretary

23 shall provide reasonable opportunity for public review of

24 and comment on such guidelines and administrative

25 manuals.’’.
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1 SEC. 27. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING

2 LOAN FUNDS.

3 Title IX of the Public Works and Economic Develop4 ment Act of 1965 (42 U.S.C. 3241–3245) (as amended

5 by section 26) is further amended by inserting after sec6 tion 906 the following new section:

7 ‘‘SEC. 907. SALE OF FINANCIAL INSTRUMENTS IN REVOLV8 ING LOAN FUNDS.

9 ‘‘Any loan, loan guarantee, or other financial instru10 ment in the portfolio of a revolving loan fund described

11 in section 906 may be sold, at the discretion of the grant

12 recipient that established the fund, to a third party. The

13 proceeds of the sale—

14 ‘‘(1) shall be deposited in the fund and only

15 used for projects that are consistent with the pur16 poses of this title; and

17 ‘‘(2) shall be subject to the financial manage18 ment, accounting, reporting, and auditing require19 ments that were originally applicable to the financial

20 instrument on the date on which the financial in21 strument was entered into.’’.

22 SEC. 28. COMPETITIVE COMMUNITIES PILOT PROGRAM.

23 Title IX of the Public Works and Economic Develop24 ment Act of 1965 (42 U.S.C. 3241–3245) (as amended

25 by section 27) is further amended by inserting after sec26 tion 907 the following new section:
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1 ‘‘SEC. 908. COMPETITIVE COMMUNITIES PILOT PROGRAM.

2 ‘‘(a) DEFINITION.—As used in this section, the term

3 ‘eligible intermediary recipient’ means—

4 ‘‘(1) a redevelopment area or an economic de5 velopment district established under title IV;

6 ‘‘(2) an Indian tribe;

7 ‘‘(3) a public-private entity sponsored by a

8 State or other political subdivision of a State, or by

9 a community division of a State;

10 ‘‘(4) a community development corporation;

11 ‘‘(5) a public or private not-for-profit corpora12 tion; and

13 ‘‘(6) a consortium of recipients described in any

14 of paragraphs (1) through (5);

15 that demonstrates the financial expertise, ability, and legal

16 authority to provide the investment for a transaction, as

17 well as the ability to develop and implement an overall eco18 nomic development plan as provided in section 402.

19 ‘‘(b) PROGRAM.—The Secretary may establish a com20 petitive communities pilot program and, in carrying out

21 the program, may make grants, loans, or loan guarantees

22 directly to or for the benefit of any eligible recipients (in23 cluding eligible intermediary recipients) for the purpose of

24 investing in identified business transactions that will cre25 ate opportunities for long-term employment in economi26 cally distressed communities.
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1 ‘‘(c) APPLICATIONS.—To be eligible to receive finan2 cial assistance under this section, a person or an entity

3 shall submit an application to the Secretary at such time,

4 in such manner, and containing such information as the

5 Secretary may require.

6 ‘‘(d) PANEL OF EXPERTS.—The Secretary shall es7 tablish a panel of experts to review applications submitted

8 to the Secretary under subsection (c). The panel shall con9 sist of 7 members as follows:

10 ‘‘(1) The Secretary (or the designee of the Sec11 retary).

12 ‘‘(2) The Assistant Secretary for Economic De13 velopment.

14 ‘‘(3) 1 Regional Director of the Economic De15 velopment Administration, appointed by the Sec16 retary.

17 ‘‘(4) 1 State Economic Development Represent18 ative, appointed by the Secretary.

19 ‘‘(5) 3 private citizens with economic develop20 ment and business expertise, appointed by the Sec21 retary.

22 ‘‘(e) CRITERIA FOR SELECTION.—The Secretary

23 shall select recipients to receive financial assistance under

24 this section, based on the quality of the applications sub25 mitted and the extent to which the applications describe
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1 activities to encompass investment initiatives that promote

2 public and private sector partnerships to advance the com3 petitiveness of the economy of local communities through

4 the creation of long-term sustainable employment opportu5 nities.

6 ‘‘(f) DEADLINES.—

7 ‘‘(1) ACTION ON APPLICATIONS.—In the case of

8 each application submitted under subsection (c) that

9 is received by a deadline established and published

10 in the Federal Register, the Secretary shall approve

11 or disapprove the application on or before the 60th

12 day after the deadline.

13 ‘‘(2) USE OF ASSISTANCE.—Any agreement re14 lating to an amount of financial assistance under

15 this section that is entered into by the Secretary and

16 an eligible recipient under the program shall require

17 that the eligible recipient provide assistance to busi18 nesses using the amount on or before the 90th day

19 after the date of receipt of such amount or shall re20 turn any remaining portion of such amount to the

21 Secretary for subsequent awards under the pro22 gram.’’.
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1 SEC. 29. SPECIAL ECONOMIC DEVELOPMENT AND ADJUST2 MENT ASSISTANCE.

3 Section 909 of the Public Works and Economic De4 velopment Act of 1965 (42 U.S.C. 3245) (as redesignated

5 by section 25(1)) is amended to read as follows:

6 ‘‘SEC. 909. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘(a) IN GENERAL.—There are authorized to be ap8 propriated to carry out this title $50,000,000 for each of

9 fiscal years 1995 through 1997. Such sums shall remain

10 available until expended.

11 ‘‘(b) ADDITIONAL AMOUNTS.—In addition to the ap12 propriations authorized by subsection (a), there are au13 thorized to be appropriated to carry out this title

14 $120,000,000 for fiscal year 1995, and such sums as may

15 be necessary for each of fiscal years 1996 and 1997, to

16 provide assistance for activities related to closures and

17 realignments of military installations and for defense con18 version activities and to provide assistance in the case of

19 a natural disaster. Such sums shall remain available until

20 expended.

21 ‘‘(c) SET-ASIDE FOR COMPETITIVE COMMUNITIES

22 PILOT PROGRAM.—Of the amounts appropriated under

23 subsections (a) and (b), not more than $40,000,000 shall

24 be available for fiscal year 1995 to carry out section 908,

25 of which not more than $15,000,000 shall be available

26 from amounts appropriated under subsection (a) and not
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1 more than $25,000,000 shall be available from amounts

2 appropriated under subsection (b).’’.

3 SEC. 30. COMPLIANCE WITH BUY AMERICAN ACT.

4 None of the funds made available under this title, or

5 any amendment made by this title, may be expended to

6 acquire articles, materials, or supplies, or to procure serv7 ices, in violation of the applicable provisions of sections

8 2 through 4 of title III of the Act of March 3, 1933 (com9 monly known as the ‘‘Buy American Act’’) (41 U.S.C.

10 10a– 10b–1).

11 SEC. 31. REGULATORY RELIEF.

12 The Assistant Secretary for Economic Development,

13 acting on a petition from an entity impacted adversely by

14 a Federal regulation on a matter of economic development

15 described in the Public Works and Economic Development

16 Act of 1965 (42 U.S.C. 3121 et seq.), shall notify the offi17 cer who is the head of the department or agency that is18 sued and administers the regulation and suggest that the

19 officer waive regulations that interfere with economic de20 velopment. Nothing in this section shall be construed to

21 preempt the authority of the head of a department or

22 agency to waive regulations. Nothing in this section shall

23 be construed to affect the ability of the Assistant Sec-
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1 retary for Economic Development to carry out the duties

2 of the Assistant Secretary, as otherwise provided by law.

Passed the House of Representatives October 7,

1994.

Attest:

Clerk.
103D CONGRESS

2D SESSION H. R. 5243

AN ACT

To amend the Public Works and Economic Develvelopment programs, and for other purposes. opment Act of 1965 to reauthorize economic de-